The compulsory course for novices in the currency circle to win with stability: grid trading

Table of contents

• 1. What is grid transaction?
• 2. What are the advantages of grid trading compared to traditional manual trading?
• 3. The principle of grid transaction
• 4. Grid trading can be adapted to various market conditions
• 5. Grid trading operation teaching
• 6. Newcomer parameter setting sharing (does not constitute investment advice)
• 7. Exclusive benefits for newcomers in this site·Blockchain Channel
• 8. Preview of the exclusive content in the future

1. What is grid transaction?

Grid trading is an automated trading tool that executes buying and selling behaviors according to preset logic to realize systematic, programmatic and regular trading methods. Compared with traditional manual trading, grid trading does not require frequent manual operations, which can significantly improve transaction efficiency, reduce operational risks, and free up your time.

2. What are the advantages of grid trading compared to traditional manual trading?

The myth of benefiting high-leverage manual trading is everywhere on the Internet, but it is difficult to distinguish between true and false. In fact, most of the high-leverage manual trading end up with zero liquidation. The reason is that manual trading has the following disadvantages:

1. Manual ordering is difficult to cover all transaction periods

The virtual currency market is a 7×24-hour continuous transaction with severe fluctuations (a single-day increase or decrease of more than 10% is common), and it is difficult to cover all trading periods manually - traders need to rest and handle other transactions, and are prone to missing arbitrage opportunities in price fluctuations.

2. Manual ordering is very likely to be affected by emotions

When the price plummets, you may not dare to buy because of fear, and when the price surges, you may chase high because of greed.

3. Manual order execution speed is slow

The price of virtual currency fluctuates rapidly (especially when the market breaks out or breaks out), there is a delay in placing a manual order from observing the price, judging, and operating to transactions, and you may miss the best buying and selling point (for example, planning to buy at $100, the hand speed is slower for a few seconds, and the price has risen to $105).

4. Manual ordering is too dependent on point judgment

Manual ordering often depends on the judgment of the "specific price point" (such as "I think $100 is the low point, so buy it here"). If the judgment is wrong (such as the actual low point is $90), it may lead to a significant loss.

In summary, manual trading has the disadvantages of easily missing trading opportunities, being affected by human nature of chasing highs and selling downs, slow execution speed, and relying on subjective judgment. We believe that newcomers should not try it easily, especially manual trading with high leverage. Grid trading can perfectly solve the shortcomings of manual trading and is more suitable for newcomers to enter the market.

1. Adapt to market characteristics and operate all day

Grid trading is fully automated through preset strategies (such as setting high and low orders within the price range), and can respond to price changes regardless of day and night, and miss the opportunity for buying and selling in short-term fluctuations.

2. Avoid emotional interference and maintain rational decision-making

Grid trading completely follows pre-set rules (such as "buy automatically after falling below a certain price, and sell automatically after rising above a certain price"), and is not affected by emotions such as greed and fear, ensuring the consistency and objectivity of trading behaviors, and reducing losses caused by irrational operations.

3. Improve execution and capture instant opportunity

Grid transactions monitor prices in real time through programs, and once they touch the preset point, they will automatically place orders and close transactions. The execution ability is much higher than manual, and can accurately capture short-term price difference.

4. Spread risks and reduce single decision-making dependencies

Grid trading forms a grid of "buy low and sell high" by setting multiple buying and selling points within a price range (such as from $90 to $110, and placing one order for every $2 rise/fall). It can not only build positions/close positions in batches during price fluctuations, spread the risks of single price judgments, but also accumulate returns through multiple small transactions.

3. The principle of grid transaction

The grid is to automatically buy low and sell high in the range, and eat the money that fluctuates back and forth in the market. When you set the parameters, the system divides the range into multiple small grids and automatically puts orders, and executes low buy and high sell as market fluctuations, thereby capturing the profits of price fluctuations. You can understand that you hired a little black worker to watch the market every moment and automatically sell high and low according to the range you set. According to the existence or not of leverage, it is divided into spot grid and contract grid:

4. Grid trading can be adapted to various market conditions

The market in the currency circle is unstable, the bull market is fluctuating and the bear market is rapidly transforming, manual orders are always easy to take over at high levels, and grid trading can continue to operate in most markets, providing stable and unaffected long-term "after-sleep gains"

5. Grid trading operation teaching

It takes only four steps to complete the operation, and take ten minutes to complete the study, and you will master scientific trading tools that 90% of users in the currency circle do not have.

Step 1: Select the grid type

Market horizontal fluctuations: choose neutral grid

Market fluctuations and rises: Choose to go long grid

Market fluctuations and declines: Choose to short the grid

Step 2: Fill in the price range

Based on the price high and low points in the cycle and the expectations of future trends. For example, the target ETH spot price is 3,981. Based on your judgment of the highest and lowest points of the price in the short and medium term, fill in it, for example, 3,000 to 5,000. In this range, you will automatically help you buy low and sell high, and if you exceed the range, the strategy will be suspended.

Step 3: Fill in the number of grids

The number of grids refers to the price range you set in the second step. According to the number of grids you fill in, the price range is equal to the grid with equal price ranges. For example: For example, the price range is 3,000 to 5,000, which is a price range of 2,000. If the number of grids is set to 100 grids, the system will automatically divide the price range of 2,000 points by 100 grids, and each grid is 20 (2,000 divided by 100 grids = 20), and the system will automatically help you buy for you when the current price falls by 20. The price increase by 20 is automatically sold for you. In this cycle, buy low and sell high, achieving stable and passive returns. But be aware of:

The number of grids should not be set too high: the transaction frequency will lead to more transaction fees

The number of grids should not be set too low: if it is too low, the trading conditions cannot be triggered.

Step 4: Fill in the leverage multiple (only applicable to contract grids), and the investment amount

The leverage ratio is only applicable to contract grids, and the spot grid does not have leverage. If you choose a contract grid, please control your own leverage ratio. It is recommended to be between 5x-10x. The investment amount is your investment principal. It is recommended that newcomers should not invest excessive amounts when trying for the first time.

6. Newcomer parameter setting sharing (does not constitute investment advice)

For ETH: The price range is set to 200 up to 200, and the number of grids is 50. For example, the current ETH price is 4,000, the upper limit of the grid is 4,200, the lower limit is 3,800, the number of grids is set to 50, and the leverage multiple does not exceed 10x.

For BTC: The price range is set to 5000 up or down the current price, and the number of grids is 50. For example, the current BTC price is 120,000, the upper limit of the grid is 125,000, the lower limit is 115,000, the number of grids is set to 50, and the leverage multiple does not exceed 10x.

It doesn't matter if you don't know how to fill in the parameters. OKX (official registration and official download) has an intelligent creation mode. The system backtests based on the historical market data of the currency pair and gives recommended parameters for the operation of the strategy. Although it is not a real benefit or guarantee, it is also a relatively excellent strategy parameter after the system is constantly backtesting, which can provide users with the convenience of placing orders with one click.

7. Exclusive benefits for newcomers in this site·Blockchain Channel

In order to help newcomers get started quickly and strive to give users of this channel a good first experience, this website, blockchain channel and OKX Ouyi have exclusively customized limited-time exclusive newcomer grid transaction benefits, benefits highlights:

Preset optimized parameter configuration: Based on the massive market data of this channel and the official data of OKX, grid parameters were jointly modulated, and the robust parameters ensured that most new users had stable income and did not overturn their positions.

10U compensation guarantee: If a loss occurs after opening an order, the losses within the 10U range shall be borne by OKX

Easy to operate: Complete order opening in 30 seconds

Note: Please carefully read the activity terms and conditions of the activity link content

8. Preview of the exclusive content in the future

This channel plans to launch a series of exclusive teaching articles "Compulsory Courses for Novice in Currency Circle to Win Stable" to help users establish scientific and stable trading concepts and practical technologies, as well as exclusive benefits tailored for new users of this channel. Stay tuned.

The above is the detailed content of The compulsory course for novices in the currency circle to win with stability: grid trading. For more information, please follow other related articles on the PHP Chinese website!